Soal SKB No.57 - TBI PKN STAN - Paket 02

57. Read the following passage, then answer the question below.

Performance-based budgeting links the allocation of government funds to measurable outcomes rather than simply tracking spending against fixed line items. Under this approach, agencies must define clear performance indicators and report progress toward specific targets before receiving subsequent budget disbursements. Proponents argue that this method improves accountability and encourages more efficient use of public resources, since underperforming programs can be identified and revised more quickly. Nevertheless, implementing performance-based budgeting requires robust data collection systems, and agencies with weak monitoring capacity may struggle to produce reliable performance reports, undermining the credibility of the entire process.

How does performance-based budgeting differ from traditional budgeting, based on the passage?